Toyota has had a long history of speaking out against an all-out transition to electric vehicles (EVs), continually pointing to hydrogen technology and continued gas vehicle production as important pieces of the puzzle. In a recent statement, a Toyota chairman referenced a new project for the automaker, and while he didn’t share details, he did emphasize how hybrids and internal combustion engines (ICE) “still play a role” in reaching carbon neutrality goals.
After Toyota boosted its 2025 battery-electric vehicle (BEV) production forecast in November, the company later that month said that it expects to produce more hydrogen cars than its recently announced solid-state EVs by 2030. On Friday, former Toyota CEO and current chairman Akio Toyoda said that the automaker has gained approval from executives to start a project to “promote engine development anew,” with messaging on high-performance ICEs expected to play a big role for the company in 2024, according to Automotive News.
“There is still a role for engines as a practical means of achieving carbon neutrality,” Toyoda said on Friday during the Tokyo Auto Salon conference. “So, let us refine engine technology.”
Toyoda says that he was given approval from current Toyota CEO Koji Sato and other members of the executive body to follow through on the project. While he didn’t provide any further details on the initiative, he reiterated themes around BEV adoption that he has echoed through much of his career, highlighting hydrogen and the need for a smooth social shift to electrification.
“Battery electric vehicles do not represent the only way to achieve carbon neutrality,” Toyoda added. “Should we not all have enthusiasm for cars as we take on the challenge.”
Through advanced combustion engine development, Toyota still hopes to help fight carbon emissions while also helping to preserve jobs for those currently in ICE manufacturing, according to Toyoda. He said that many of the roughly 5.5 million people in Japan’s important automotive sector currently rely on part production for ICE vehicles.
“These people support Japan and have the skills to make the Japan of tomorrow strong. We must never lose these people,” Toyoda said. “To all those who have made engines up until now, let us continue to make engines… I will never let all the work you have all done so far go to waste.”
Toyota has had a fairly long history of vouching for a gradual transition to battery electric tech, and generally holding off on an “EV-only” approach to electrification—despite being the hybrid pioneer that developed the Prius.
In May, Toyota sent a document to dealerships highlighting what the company considered three major barriers to widespread BEV adoption. Toyota wrote that the first major barrier was the impossible demand for critical minerals needed to make EV batteries, while the lack of charging infrastructure and affordability were the other two.
The document elicited a response from Tesla Vice President of Investor Relations Martin Viecha, who debunked the claims, saying, “How is this a real document?”
1. Less mining/extraction is needed in renewable economy due to no fossil fuel extraction
2. Your car is fully charged every morning, so fast charging needs are limited, yet widely available
3. Model 3 costs ~$37.5k post EV creditHow is this a real document?
— Martin Viecha (@MartinViecha) May 30, 2023
In 2021, a New York Times report also depicted how a Toyota executive had lobbied against an aggressive electrification strategy in a meeting with U.S. congressional staff, as part of larger, worldwide efforts to reject stricter regulations in the U.S. the European Union, the United Kingdom, Japan, India, and Australia, among others still. The automaker’s slow-paced approach to electrification was also defended by the White House last year.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
News
Tesla leases new 108k-sq ft R&D facility near Fremont Factory
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
Tesla has expanded its footprint near its Fremont Factory by leasing a 108,000-square-foot R&D facility in the East Bay.
The lease adds to Tesla’s presence near its primary California manufacturing hub as the company continues investing in autonomy and artificial intelligence.
A new Fremont lease
Tesla will occupy the entire building at 45401 Research Ave. in Fremont, as per real estate services firm Colliers. The transaction stands as the second-largest R&D lease of the fourth quarter, trailing only a roughly 115,000-square-foot transaction by Figure AI in San Jose.
As noted in a Silicon Valley Business Journal report, Tesla’s new Fremont lease was completed with landlord Lincoln Property Co., which owns the facility. Colliers stated that Tesla’s Fremont expansion reflects continued demand from established technology companies that are seeking space for engineering, testing, and specialized manufacturing.
Tesla has not disclosed which of its business units will be occupying the building, though Colliers has described the property as suitable for office and R&D functions. Tesla has not issued a comment about its new Fremont lease as of writing.
AI investments
Silicon Valley remains a key region for automakers as vehicles increasingly rely on software, artificial intelligence, and advanced electronics. Erin Keating, senior director of economics and industry insights at Cox Automotive, has stated that Tesla is among the most aggressive auto companies when it comes to software-driven vehicle development.
Other automakers have also expanded their presence in the area. Rivian operates an autonomy and core technology hub in Palo Alto, while GM maintains an AI center of excellence in Mountain View. Toyota is also relocating its software and autonomy unit to a newly upgraded property in Santa Clara.
Despite these expansions, Colliers has noted that Silicon Valley posted nearly 444,000 square feet of net occupancy losses in Q4 2025, pushing overall vacancy to 11.2%.
In Pennsylvania, we got between 10 and 12 inches of snow over the weekend as a nasty Winter storm ripped through a large portion of the country, bringing snow to some areas and nasty ice storms to others.
I have had a Model Y Performance for the week courtesy of Tesla, which got the car to me last Monday. Today was my last full day with it before I take it back to my local showroom, and with all the accumulation on it, I decided to run a cool little experiment: How long would it take for Tesla’s Defrost feature to melt 8 inches of snow?
Tesla’s Defrost feature is one of the best and most underrated that the car has in its arsenal. While every car out there has a defrost setting, Tesla’s can be activated through the Smartphone App and is one of the better-performing systems in my opinion.
It has come in handy a lot through the Fall and Winter, helping clear up my windshield more efficiently while also clearing up more of the front glass than other cars I’ve owned.
The test was simple: don’t touch any of the ice or snow with my ice scraper, and let the car do all the work, no matter how long it took. Of course, it would be quicker to just clear the ice off manually, but I really wanted to see how long it would take.
Tesla Model Y heat pump takes on Model S resistive heating in defrosting showdown
Observations
I started this test at around 10:30 a.m. It was still pretty cloudy and cold out, and I knew the latter portion of the test would get some help from the Sun as it was expected to come out around noon, maybe a little bit after.
I cranked it up and set my iPhone up on a tripod, and activated the Time Lapse feature in the Camera settings.
The rest of the test was sitting and waiting.
It didn’t take long to see some difference. In fact, by the 20-minute mark, there was some notable melting of snow and ice along the sides of the windshield near the A Pillar.
However, this test was not one that was “efficient” in any manner; it took about three hours and 40 minutes to get the snow to a point where I would feel comfortable driving out in public. In no way would I do this normally; I simply wanted to see how it would do with a massive accumulation of snow.
It did well, but in the future, I’ll stick to clearing it off manually and using the Defrost setting for clearing up some ice before the gym in the morning.
Check out the video of the test below:
❄️ How long will it take for the Tesla Model Y Performance to defrost and melt ONE FOOT of snow after a blizzard?
Let’s find out: pic.twitter.com/Zmfeveap1x
— TESLARATI (@Teslarati) January 26, 2026
Tesla Robotaxi ride-hailing without a Safety Monitor is proving to be a difficult task, according to some riders who made the journey to Austin to attempt to ride in one of its vehicles that has zero supervision.
Last week, Tesla officially removed Safety Monitors from some — not all — of its Robotaxi vehicles in Austin, Texas, answering skeptics who said the vehicles still needed supervision to operate safely and efficiently.
BREAKING: Tesla launches public Robotaxi rides in Austin with no Safety Monitor
Tesla aimed to remove Safety Monitors before the end of 2025, and it did, but only to company employees. It made the move last week to open the rides to the public, just a couple of weeks late to its original goal, but the accomplishment was impressive, nonetheless.
However, the small number of Robotaxis that are operating without Safety Monitors has proven difficult to hail for a ride. David Moss, who has gained notoriety recently as the person who has traveled over 10,000 miles in his Tesla on Full Self-Driving v14 without any interventions, made it to Austin last week.
He has tried to get a ride in a Safety Monitor-less Robotaxi for the better part of four days, and after 38 attempts, he still has yet to grab one:
Wow just wow!
It’s 8:30PM, 29° out ice storm hailing & Tesla Robotaxi service has turned back on!
Waymo is offline & vast majority of humans are home in the storm
Ride 38 was still supervised but by far most impressive yet pic.twitter.com/1aUnJkcYm8
— David Moss (@DavidMoss) January 25, 2026
Tesla said last week that it was rolling out a controlled test of the Safety Monitor-less Robotaxis. Ashok Elluswamy, who heads the AI program at Tesla, confirmed that the company was “starting with a few unsupervised vehicles mixed in with the broader Robotaxi fleet with Safety Monitors,” and that “the ratio will increase over time.”
This is a good strategy that prioritizes safety and keeps the company’s controlled rollout at the forefront of the Robotaxi rollout.
However, it will be interesting to see how quickly the company can scale these completely monitor-less rides. It has proven to be extremely difficult to get one, but that is understandable considering only a handful of the cars in the entire Austin fleet are operating with no supervision within the vehicle.
Tesla leases new 108k-sq ft R&D facility near Fremont Factory
Tesla winter weather test: How long does it take to melt 8 inches of snow?
